A MONTHLY METER OF INDUSTRY TRENDS

A MIXED BAG FOR INDUSTRIAL REITS

Industrial REITs delivered a mixed performance during the month of September. However, the top-performing REITs in the sector did outstrip the broader SNL Equity REIT index, which itself declined 0.62%.

Company Name

Ticker

Closing Price ($)

Price Change Sept. (%)

Equity Market Cap ($M)

CenterPoint Properties Trust

CNT

43.58

4.41

2,103.5

First Potomac Realty Trust

FPO

20.66

2.13

321.3

Monmouth Real Estate Investment Corp.

MNRTA

8.34

1.58

141.7

Liberty Property Trust

LRY

39.84

0.13

3,538.5

AMB Property Corp.

AMB

37.02

-0.11

3,241.7

EastGroup Properties, Inc.

EGP

33.20

-0.75

698.3

Catellus Development Corp.

CDX

26.51

-2.07

2,731.3

ProLogis

PLD

35.24

-2.63

6,572.0

First Industrial Realty Trust Inc.

FR

36.90

-7.26

1,763.0

Sources: SNL Financial

OFFICE RENTS TO UNDERGO A GROWTH SPURT?

New York, Washington D.C., Southern California and South Florida will likely experience the greatest rent growth between 2004 and 2010. Low vacancy rates and economic growth in these markets will stimulate growth, reports real estate research firm Delta Associates.

Projected Average Change in Rent Per Year for Selected Metro Areas

Market Annual

Average Annual Change in Rent - 1990s Expansion

Projected Average Annual Change in Rent - 2004-2010

New York

6.3%

7.5%

Orange County

3.6%

7.0%

Washington, D.C.

4.8%

6.5%

South Florida

3.8%

6.5%

Los Angeles

2.4%

6.0%

Phoenix

6.4%

6.0%

Boston

8.4%

5.5%

Dallas/Ft. Worth

4.9%

5.5%

Atlanta

4.1%

5.0%

Houston

3.9%

5.0%

Source: Delta Associates

SMITTEN WITH SMALL CITIES

Most analyses of migration patterns in America focus on Baby Boomers' eventual Frost Belt-to-Sun Belt tsunami. But, an under-the-radar trend shows a quieter exodus crossing that grain, bypassing the suburbs and sunny climes for more rural, less subdivided environs. The National League of Cities reports that small cities — those with less than 50,000 residents — grew by 18.5% through the 1990s, compared with 12.9% growth for medium-sized cities (population 50,000 to 175,000) and 9.1% for the nation's biggest burgs.